The independent review into boohoo’s product supply chain led by Alison Levitt QC had identified “many failings in the Leicester supply chain and recommended improvements to boohoo’s related corporate governance, compliance and monitoring processes.” This was partially offset by the finding of evidence that the company was already responding to problems it had found in its supply chain, and that it had already made a start on putting right.
boohoo CEO John Lyttle said that the review had identified significant and clearly unacceptable issues in the business’ supply chain, acknowledging that it had taken steps to address them but needed to go further and faster to improve its governance, oversight and compliance. “As a result,” he said, “the group is implementing necessary enhancements to its supplier audit and compliance procedures, and the Board’s oversight of these matters will increase significantly.”
The business also said that it will be appointing two new non-executive directors, a specialist to provide independent oversight of its change agenda and a new group director of responsible sourcing. It is also developing aa new set of purchasing principles, which will be supported by a bonus structure, and plans to bring in an electronic audit programme within the next year.
Lyttle added; “Garment workers in Leicester, and our suppliers across the city, are an important part of our success. We recognise that boohoo has been a major force in driving the textile industry in Leicester and today want to reinforce our commitment to being a leader for positive change in the city, alongside workers, suppliers, local government, NGOs and the community at large.”